NCC shares fell as much as 10% in intraday trade on Thursday, February 19, to their lowest level in a year after the company and its subsidiary faced action from the National Highways Authority of India (NHAI).
NCC share price cracked 9.85% on the National Stock Exchange (NSE) to ₹135 apiece, also its fresh 52-week low.
Why is NCC share price falling?
According to an exchange filing shared by the company, OB Infrastructure Limited (OBIL), a step-down subsidiary of the company, along with NCC, has received an order of debarment from the NHAI for a period of two years.
The order bars the subsidiary and NCC from participating in any tender/bid/RFP issued by NHAI, whether acting as Concessionaire, Contractor, EPC Contractor, O&M Contractor, O&M Agency, or Consortium Member, for a period of two years with effect from February 17, 2026.
The debarment relates to a highway project in Uttar Pradesh executed by OBIL under a 2006 concession agreement on a BOT (Annuity) basis. OBIL maintains that project delays were caused by NHAI’s failure to hand over land on time and other contractual breaches.
The company initiated arbitration and received a favourable award in November 2024, which NHAI has challenged before the Delhi High Court. Additional disputes related to the project are also under arbitration.
OBIL has stated that the debarment was initiated while arbitration proceedings are ongoing, after the concession period had ended, and without allowing it to be heard. The company plans to challenge the order in accordance with the law.
It also clarified that there is no financial or operational impact on the existing orders and ongoing projects of the company. However, the impact on future tenders is not quantifiable at the moment.
NCC’s order book at the end of December 2025 stood at a robust ₹79,571 crore, with the transportation segment accounting for 22% of the orders. The order book grew 38% year-on-year (YoY) in Q3 FY26 even as standalone revenue declined 14% to ₹4,082 crore.
Meanwhile, PAT was higher by 2% at ₹82 crore, with EBITDA at ₹328 crore. The company had a net debt of ₹2,830 crore on its books.
Is it a good time to buy NCC shares?
NCC shares remain marginally higher on a month-to-date basis after back-to-back losses from November to January, during which it shed 34%.
NCC Limited has corrected nearly 62% over 84 weeks, eventually testing a major demand band in the 163 to 138 zone, and the stock is now attempting a technical rebound toward its 50-day EMA near 158, reflecting short-term mean reversion rather than structural repair, according to Anshul Jain, Head of Research at Lakshmishree.
“However, the broader trend remains damaged, with significant overhead supply built during the prolonged decline. Daily and weekly charts continue to show lower highs, and moving averages above price are likely to cap advances. Volume behaviour does not yet indicate strong accumulation. Given this supply overhang, the bounce appears corrective in nature,” he opined.
At current levels, he said that the risk–reward does not favour fresh longs, and rallies toward resistance should be approached with caution rather than aggression.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.
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